Initially, you should effect free registration of your company with BrazilTradeNet (BTN), expressing your interest in investing in Brazil. BTN is the foreign trade portal of the Trade Promotion Department of the Ministry of External Relations (DPR/MRE) and the largest and most complete trade information network in Latin America. It was created to stimulate Brazilian exports and attract direct investment to Brazil. Your registration data on BrazilTradeNet will be transferred automatically to the Commercial Section (SECOM) nearest to you, which will then contact you. These SECOMs are attached to Brazilian Embassies and Consulates abroad and have specialized staff, trained to promote contacts between Brazilian and local companies, and provide information on the Brazilian economy and business environment. See link below for a full list of SECOMs.

SECOMs are operated by the Investment Promotion and Technology Transfer System (SIPRI) of the DPR/MRE. The goals of SIPRI are to attract foreign direct investment to Brazil, to foster partnerships between Brazilian and foreign companies, and to enable transfers of state-of-the-art technology to Brazil. The DPR/MRE also makes available the “Legal Guide for Foreign Investors in Brazil” (see link below), which provides investors with information on such issues as: how to register foreign capital in Brazil; the courts system; the foreign exchange regime; forms of association; the tax system; antitrust, labor, and environmental legislation; privatizations; civil and commercial litigation; the regulatory structure of capital markets; etc.

What Are the Most Attractive Sectors for Investment in Brazil?

All sectors of the Brazilian economy offer opportunities for foreign investment. It is worth mentioning that the Brazilian Federal Government has selected certain strategic sectors under its Industrial, Technology and Foreign Trade Policy, for which additional incentives are offered. These sectors are: Semiconductors; Pharmachemicals; Software; Biomass and Bioenergy and Capital Goods.

What Investment Incentives Are Offered by the Brazilian Government?

Foremost among the incentives offered by the Brazilian Government are Public-Private Partnerships, and the legislation mentioned in item 2 - Support Mechanisms and Investment Incentives. Furthermore, there are a variety of sectoral and regional foreign investment incentives. In this respect, investors can rely on support from SIPRI Focal Points (see link below), regional partners specialized in assisting foreign investors in Brazil.

What Legislation Provides for Foreign Investment Incentives in Brazil?

The main legislation on investment in Brazil is described in the “Legal Guide for Foreign Investors in Brazil” (see link below).The following strategic sectors are encompassed by specific legislation under the Industrial, Technology and Foreign Trade Policy (PITCE): software, pharmaceutical inputs and medical drugs, Bioenergy, semiconductors, and capital goods.

Which Countries Are Brazil’s Main Trade Partners?

In the 2006/2005 period, the main purchasing countries for Brazilian exports were: the United States of America, Argentina, China, Germany, the Netherlands, Mexico, Japan, Italy, Chile, and Venezuela.The main sources of Brazil’s imports in the same period were: the United States, China, Argentina, Germany, Japan, Nigeria, South Korea, France, Algeria, and Italy.

What Countries Are the Main Sources of Foreign Investment in Brazil?

In the period between 2001 and up to September 2005, total Foreign Direct Investment in Brazil amounted to US$ 87.966 million (see the table below). The leading countries in this ranking were: the Netherlands (Holland), the United States of America, France, Spain, Germany, Portugal, and Japan.

The United States was the single most important source of FDI in Brazil in 2000, and accounted for 18.4% of total FDI stock in the period 2001-2004. However, since 1995 the Netherlands has been growing in importance and became the largest home nation providing 19.7% of accumulated flows in the period 2001-2004 (Table I.3).

Dutch companies have primarily become large investors in Brazil’s food and beverages industry, telecommunications, retail trading and financial services. Recent investment from the United States has been directed at services (especially to telecommunications and electricity and, less so, to financial services) and manufacturing (mainly food and beverages, chemicals, machinery and equipment, and the automotive industry).

Until the mid-1990s, Germany (with 14% share in 1995), France, Switzerland and Japan (between 6-7% each) were important home countries. Since the marked increase in FDI inflows from 1995 the list has grown to include Spain and Portugal. Spain and Portugal together accounted for 11.8% of total FDI stock in 2001-2004, compared with just 0.9% in 1995 (Table I.3). Most of their FDI went to telecommunications, electricity and financial services and was related to privatizations. French, Between 1995 and the period 2001-2004 the share of FDI entering Brazil from these sources almost doubled. German and Japanese companies have recently stepped up their investment. FDI from tax havens is also large and increasing.

Where Are Brazil’s Main Industrial Centers Located?

The main industrial centers in Brazil are located in the Southeast and South regions. Increasingly, however, investment flows are moving toward the Central-West, North, and Northeast, attracted by the potential of these regions.

Source: Brazil TradeNet.

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